Multiple Changes in Profit Plans In an attempt to improve profit performance, Anderson Company's management is considering a number of alternative actions. An October contribution income statement for Anderson Company follows. Required Determine the effect of each of the following independent situations on monthly profit. Note: Do not use negative signs with your answers. a. Purchasing automated assembly equipment, which should reduce direct labor costs by $4 per unit and increase variable overhead costs by $1 per unit and fixed factory overhead by $10,800 per month. $ b. Reducing the selling price by $5 per unit. This should increase the monthly sales by 2,700 units. At this higher volume, additional equipment and salaried personnel would be required. This will increase fixed factory overhead by $3,600 per month and fixed selling and administrative costs by $1,620 per month. $ c. Buying rather than manufacturing a component of Anderson's final product. This will increase direct materials costs by $5 per unit. However, direct labor will decline $3 per unit, variable factory overhead will decline $1 per unit, and fixed factory overhead will decline $22,500 per month. $ d. Increasing the unit selling price by $5 per unit. This action should result in a 1,800 unit decrease in monthly sales. $ e. Combining alternatives (a) and (d). $